Tips for Landlords

7 Tips To Help Landlords Determine the Best Rental Price

A lot of factors enter the equation when it comes to deciding on the rental price for your rental property in Bethesda, MD

Do you wish to beat the competition while maintaining a reputation of having the best rental property there is? Do you want your rental price to attract tenants without worrying about losing them? 

You can do that, but it comes with considerable research. The rental market has no doubt experienced considerable growth over the years. As a landlord, it is essential to keep up with market trends and prices. 

Doing so will show you that the percentage of property owners who have seen a profit in their rental property has increased from 13% to 21% in the past year. So, deciding on a price for your Bethesda rental property could be tricky. 

When renting out your property, a major inclusive factor is its rental price. Now this decision can be a tough one to make if you do not know the vital things to consider. 

Choosing the right price can go a long way in attracting prospective tenants while generating high revenue for you.

Consider Your Property’s Amenities

When deciding the price for your rental property in Bethesda, you should assess the amenities. Placing a standard rental price solely based on the number of bedrooms and bathrooms it comes with will end up hurting your revenue in the long run. 

The best way to go about this is to charge slightly differing prices based on how preferable the property is in the current market.

You should set your rent based on the following:

  • Available Updates – Units that come with modified or updated amenities, appliances, and hardwood floors tend to be more desirable than those without.
  • View – Units that have appealing views such as a garden, sea, and other pretty sights are preferable to those with a bland view.
  • Layout – People have different preferences when it comes to property layouts. When setting your rental price, you should include a detailed description of its layout.
  • Square Footage – The larger your property’s square footage, the more desirable your property is.
  • Storage Space – If the property has ample storage space, this is considered a high-ticket item to renters and could increase your rental price. People will pay more for closet space, parking spaces, and other storage spaces.

Research Your Local Rental Market

When setting up a price for your Bethesda property, you should do thorough research on your local rental market. Having a good sense of the prices of units like yours in your local market helps to influence your decision. 

Prices may vary from location to location, so it is best to focus on the area where your property is located. Factors like the economy and time of year can affect people’s choices to move, therefore affecting your rental price. 

For instance, most people move to smaller homes during a struggling economy. Also, more people move during summer before the start of a new school year. 

Accurately Calculate Your Rent Price

Knowing the value of your Bethesda property is vital. This is because it aids you in making a good decision when it comes to setting up a rental price. 

The amount you wish to charge should be a percentage of your property’s market value. Usually, landlords charge rent between 0.8% and 1.1% of the property’s value

You can also seek the help of a trusted property management firm to guide your decision better.

Emphasize the Property’s Value, Not the Price

When advertising your rental property in Bethesda, you should sell its value more than its price. No one wants to feel like they are forced into paying for anything. 

However, if you properly highlight the value of your rental property, it attracts prospective tenants. Your property listing should get your prospective tenant’s attention with a great title and a clear picture and description of the property. 

When you put your property’s value out there, people will be willing to pay higher than you imagine for the good stuff. 

Research Your Competition

The first step in researching your competition is to analyze your property’s location and compare it with similar ones in the area. The competition in your region will influence the rental price you set up for your Bethesda property. 

Some things to look out for include:

  • Online and newspaper ads for similar properties in your area
  • Consult with local landlords and reputable realtors concerning fair rent prices
  • Take note of oversaturation and excessive incentives in your area
  • Ask for vacancy rates of similar properties and adjust your rental prices accordingly
  • Evaluate your rental property’s amenities and compare them to similar properties in the area
  • Make use of helpful tools such as the Zillow calculator to give you a good idea of the rent rates in your region

People want to receive value for their money. You should make your rental property in Bethesda stand out among similar ones around. 

Incorporate updated amenities and features that will make your unit more desirable than your competition.

Determine Your Profit Margin

When it comes to placing a price tag on your rental property in Bethesda, you should determine what your profit margin is. To figure out what your profit margin is, start with insurance costs, maintenance and repair expenses, monthly mortgage, and taxes. At the very least, the rental price you charge your prospective tenants should cover these costs.

If you do not figure out your profit margin accurately, you will end up covering most of the costs yourself. 

Work with a Property Management Company

Setting up a rental price isn’t a task to be taken lightly as it determines your revenue generation for your real estate investment. You have to find the sweet spot between making a profit and offering a fair and attractive home and price to your tenants.  

If you can’t seem to find your way around the whole process, you should seek the help of experts. Renting your property comes with advanced property advertisements, aggressive marketing, and detailed tenant screening. 

When you work with a trusted property management company in your area, you will always have the perfect rental price, high-quality tenants, and professional care and attention for your property. 

Mainstay Property Management is Here to Help

When deciding on the perfect price for your rental property in Bethesda, you should consider the helpful tips above. 

If you want to make the most profit from your real estate investment and work with real estate professionals, Mainstay Property Management is your answer. 

Offering property owners full-service management and maintenance packages, our team of experts is waiting to help you make the most out of your Bethesda property. 

Contact us today and see how we can work together to find the right rental price for your property.

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